Q: My client inherited a 4-plex and he asked that I secure some tenants. I did not know anything about the Property and my client did not tell me that the Property was in a flood zone or that there were separate water meters. I procured a qualified tenant and prepared the C.A.R. Lease but did not check any of the disclosure items. The Tenant was not happy with the unit and threatened to sue the Landlord because of the lack of required disclosures. On the advice of his attorney, my client let her leave and gave her back all of her money.
What is the best method for getting the necessary information from Landlords to enable the Listing Agent to properly prepare the Lease. Do you have anything that we can use?
A: There is no standard form that Landlords can fill out to inform Listing Agents about all of the relevant information that is necessary for the Agent to properly complete the C.A.R. Residential Lease and/or to provide all of the required separate Landlord Notices. It is not particularly efficient to have Landlords complete the disclosure information in the Lease prior to the Tenant signing the Lease and not all Landlords want to use the C.A.R. Lease.
In response to this situation, Broker Risk Management has created the Landlord Residential Listing Questionnaire (scroll down to view). The form was designed to not only secure the material facts from the Landlord that need to be disclosed to Tenants but to advise Landlords of what additional documentation may need to be provided to the Tenants.
The form also serves as a reminder to the Listing Agent that Tenants are legally entitled to be warned about many of the same issues that Buyers need to know when buying residential property.
PRACTICE TIPS:
1. The best practice for Listing Agents is to have the Landlord complete the attached Questionnaire at the time the Lease Listing Agreement is signed.
2. The Listing Agent needs to review all of the Landlord’s responses and obtain the Notices and other forms that are referenced in the Questionnaire.
3. If an agent is representing a Tenant and is not representing the Landlord, the Tenant’s agent should consider asking the Listing Agent, the Property Manager or the Owner (whoever the agent is to contact) to have the Questionnaire completed before preparing the Lease.
DO NOT FORWARD TO SELLERS OR BUYERS. This Weekly Practice Tip is for the exclusive use of clients of Broker Risk Management and their agents. It may not be reproduced or distributed without the express written consent of Broker Risk Management. The advice and recommendations contained herein are not necessarily indicative of standards of care in the industry, but rather are intended to suggest good risk management practices.
Copyright© Broker Risk Management 2018 08/31/18
Landlord Residential Listing Questionnaire
ADDRESS: ___________________________________________________________________________(“Property”)
As the Landlord of the Property, please provide the following information to help us represent your interests in leasing the Property. This Questionnaire is not intended to be part of either the Listing Agreement or any subsequent Lease Agreement with a Tenant. Listing Agent has not verified, and will not verify, any of the information that you provide. If you want or need legal advice, you should consult a qualified California Real Estate attorney who specializes in Landlord-Tenant Law.
Are you (Landlord) aware of any of the following:
- If any structure was constructed prior to 1979, does that building have any asbestos-
containing construction materials? ……………………………………………………………………..………………….… □Yes □No □ N/A
(IF YES, Landlord must provide notice to Tenants of the contents of any report conducted to determine its
existence, location, and the general procedures & handling restrictions necessary to prevent or minimize
disturbance, release and exposure.)
- Was any structure constructed prior to 1978? …………………………………………………..…………..……………………. □Yes □No
(IF YES, Landlord must provide Lead Disclosure Addendum (“FLD”) and Tenant must receive a copy of
Residential Environmental Hazards booklet.)
- Are there any other past or current environmental hazards on the Property such as mold, fuel, or
chemical storage tanks formaldehyde, and contaminated soil or water? …………..…………………..… □Yes □No
(IF YES, Landlord must provide Tenant with written explanation. Tenant should receive a copy of Residential
Environmental Hazards booklet.)
- Have you received a Health Official Notice regarding methamphetamine contamination? ……………….. □Yes □No
(IF YES, Landlord must attach a copy of the Notice to the Lease given to the Tenant)
- Are you aware of whether or not the Property is located in a flood hazard area of potential
flooding? ………………………………………………………………………………………………………………….………………………… □Yes □No
(Landlord must disclose actual knowledge of flood hazards on the Tenant Flood Hazard Disclosure (“TFHD”)
which must be provided to all Tenants regardless of Landlord’s answer to Question #5.)
- Are you aware of any known bed bug infestations or efforts to eliminate bed bugs? ……….……….…….… □Yes □No
(Landlord must provide Tenants with Bed Bug Disclosure (“BBD”) regardless of answer to Question #6.)
- Have you entered into a contract for periodic pest control treatment? ………………………………….…….…… □Yes □No
(IF YES, Landlord must give Tenant a copy of the Notice originally given to Landlord by pest control company.)
- Carbon Monoxide Detectors installed as required? ……………………………..………….…………………….. □Yes □No □ N/A
(This is an installation requirement, no disclosure obligation for Landlord or Listing Agent.)
- Smoke Alarms installed per requirements in each bedroom and hallways? ……………………….. □Yes □No
(This is an installation requirement, not a disclosure obligation for Landlord or Listing Agent.)
- Water heater(s) braced, anchored or strapped in place per requirements? …………………………..….….….. □Yes □No
(This is an installation requirement, not a disclosure obligation for Landlord or Listing Agent.)
- Any non-compliant water-conserving plumbing fixtures? …………………………..…………….……..……..………… □Yes □No
(This is an installation requirement, not a disclosure obligation for Landlord or Listing Agent.)
- Any death of any person on the Property within the last 3 years? …………………………..……………………..…. □Yes □No
(IF YES, Landlord must provide Tenant with written disclosure; Exempt Seller Disclosure {“ESD”) may be used.)
- Notice of Default recorded on Property? ………………….……………………………………………..………………….….… □Yes □No
(IF YES, Landlord must provide Tenant with Landlord in Default Addendum (” LID”)
- Are gas and/or electric meters shared? …………………….…………………………………………………………..…..…….. □Yes □No
(IF YES, Landlord must provide each Tenant/user the utility’s bills & post in conspicuous place, the
applicable current residential gas or electrical rate schedule or post the internet website for the
utility rate schedule.)
- Will Tenant be billed separately for water service? ………………………………….………………..………………….… □Yes □No
(IF YES, Landlord must provide Tenant with the Water Submeter Addendum (“WSM”)
- Are Premises located within 1 mile of an area once used for military training with munitions? …………… □Yes □No
(IF YES, Landlord must provide Tenant with written disclosure; Exempt Seller Disclosure {“ESD”) may be used.)
- Any known dangerous conditions anywhere on Property? ……………………………………………………………… □Yes □No
(IF YES, Landlord must provide Tenant with written explanation. For example, if there is a pool or spa, are there
any safety devices in place to prevent children aged 4 and under from drowning?)
_____________________________ __________ ______________________________ __________
Landlord Date Landlord Date